Canton Coin rose more than 6% after US securities regulators recognized the blockchain’s native token as a digital commodity.
The token traded at $0.09892, according to CryptoSlate’s data, as investors assessed a Nov. 3 decision that removes a significant regulatory obstacle for the institutional blockchain network.
The Securities and Exchange Commission’s (SEC) Division of Corporation Finance said it would not recommend enforcement action against certain network participants that earn newly minted Canton Coin (CC) for operating infrastructure and applications without registering those activities under federal securities laws.
The decision drew praise from Miles Jennings, head of policy and general counsel at Andreessen Horowitz’s a16z Frontier, who argued that the ruling establishes a broader regulatory pathway for blockchain projects.
“Incredible,” Jennings wrote on X, pointing to the SEC’s March token classification framework and subsequent guidance.
He added that the developments had created a clear pathway out of securities laws, arguing that network tokens should be treated as digital commodities.
His assessment carries particular commercial significance for Andreessen Horowitz. The venture capital firm’s a16z crypto fund led a $355 million financing round for Canton developer Digital Asset in June, alongside financial institutions including BNP Paribas, HSBC and Citadel Securities.
SEC decision opens a path for blockchain infrastructure rewards
The SEC’s decision applies its March 2026 crypto asset framework to Canton, a blockchain designed to support transactions between financial institutions while preserving commercial privacy.
Under the arrangement submitted by Digital Asset’s lawyers, three groups can earn newly created tokens: Super Validators that operate synchronization infrastructure, Validators that process and support transactions, and application providers that build services connected to the network.
Participants receive rewards based on measurable contributions through automated minting rounds. Canton Coin also serves as payment for transaction fees, with tokens used for those fees subsequently burned.
The SEC staff accepted the company’s representations that the token derives its value from network activity and market supply and demand, rather than expectations of profits generated by the managerial efforts of others.
Another consideration was Canton’s governance structure, which the company described as lacking a central controlling party.
According to Digital Asset’s submission, neither the developer nor the Canton Foundation can independently change the network’s economic parameters. Such changes require approval from at least two-thirds of Super Validator Node Operators.
These characteristics align with the SEC’s March 17 interpretation, which distinguished digital commodities from securities and addressed the treatment of crypto mining, staking and other network activities.
The agency subsequently expanded that framework through frequently asked questions, including clarifications issued Nov. 2 concerning decentralized governance arrangements.
Canton’s decision provides a concrete example of how blockchain developers can apply those guidelines to existing networks, potentially giving other projects a model for structuring token-based infrastructure incentives.
However, Jennings’ broader interpretation goes beyond the specific assurance the SEC staff provided.
The no-action position covers Canton’s described minting arrangements and does not automatically exempt other token distributions or investment products from securities laws. The division also emphasized that its response expresses an enforcement position rather than a binding legal conclusion.
Other blockchain developers seeking similar treatment would therefore need to establish that their network operations, governance arrangements and token distribution mechanisms satisfy the relevant regulatory criteria.